Comparing Northrop Grumman (NYSE:NOC) & Inflection Point Acquisition (NASDAQ:IPAX)

Northrop Grumman (NYSE:NOC – Get Rating) and Inflection Point Acquisition (NASDAQ:IPAX – Get Rating) are both aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Profitability

This table compares Northrop Grumman and Inflection Point Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northrop Grumman	13.38%	28.29%	9.33%
Inflection Point Acquisition	N/A	-53.90%	-0.36%

Insider & Institutional Ownership

84.3% of Northrop Grumman shares are owned by institutional investors. Comparatively, 94.7% of Inflection Point Acquisition shares are owned by institutional investors. 0.3% of Northrop Grumman shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Northrop Grumman has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Inflection Point Acquisition has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.

Earnings & Valuation

This table compares Northrop Grumman and Inflection Point Acquisition’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrop Grumman	$36.60 billion	1.84	$4.90 billion	$31.51	14.08
Inflection Point Acquisition	N/A	N/A	-$320,000.00	N/A	N/A

Northrop Grumman has higher revenue and earnings than Inflection Point Acquisition.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Northrop Grumman and Inflection Point Acquisition, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrop Grumman	1	6	7	0	2.43
Inflection Point Acquisition	0	0	1	0	3.00

Northrop Grumman currently has a consensus target price of $508.13, indicating a potential upside of 14.55%. Inflection Point Acquisition has a consensus target price of $14.00, indicating a potential upside of 12.00%. Given Northrop Grumman’s higher possible upside, equities analysts plainly believe Northrop Grumman is more favorable than Inflection Point Acquisition.

Summary

Northrop Grumman beats Inflection Point Acquisition on 9 of the 11 factors compared between the two stocks.

About Northrop Grumman

(Get Rating)

Northrop Grumman Corp. engages in the provision of advanced aircraft systems. It operates through the following segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. The Aeronautics Systems segment is involved in the design, development, production, integration, sustainment, and modernization of advanced aircraft systems for the U.S. Air Force, the U.S. Navy, other U.S. government agencies, and international customers. The Defense Systems segment includes integrated battle management systems, weapons systems and aircraft, and mission systems sustainment and modernization. The Mission Systems segment offers advanced mission solutions and multifunction systems, primarily for the U.S. defense and intelligence community, and international customers. The Space Systems segment delivers end-to-end mission solutions through the design, development, integration, production and operation of space, missile defense, launch and strategic missile systems for national security, civil government, commercial, and international customers. The company was founded by John K. Northrop, Thomas V. Jones, and Kent Kresa in 1939 and is headquartered in Falls Church, VA.

About Inflection Point Acquisition

(Get Rating)

Inflection Point Acquisition Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the consumer and technology industries. The company was incorporated in 2021 and is based in New York, New York.